Balrampur Chini Mills Limited has submitted its Monitoring Agency Report for the quarter ended September 30, 2026. This report details the utilization of proceeds raised through a preferential issue. The company confirmed that the monitoring agency, India Ratings & Research Private Limited, found no deviation from the objects of the issue. The report was reviewed and accepted by the Audit Committee and the Board of Directors.
Monitoring Agency Report Filed for Preferential Issue
Balrampur Chini Mills Limited has formally submitted its Monitoring Agency Report concerning the utilization of funds raised from a preferential issue. This report covers the financial quarter that concluded on September 30, 2026.
Key Findings of the Report
The Monitoring Agency, India Ratings & Research Private Limited, has confirmed that there has been no deviation from the stated objects of the preferential issue. This finding is based on management undertakings and a certificate from the company’s statutory auditor, LODHA & CO LLP. The report also indicates that the deviation from the objects is Not Applicable for this period.
Progress and Deployment of Funds
As of September 30, 2026, the total amount utilized for the preferential issue proceeds was ₹321.36 crore, with an unutilized amount of ₹128.64 crore. The primary objects being monitored are the ‘Purchase of Plant & Machinery for Poly Lactic Acid (PLA) Project’ (₹230.00 crore original cost) and the ‘Establishment of Gypsum Processing Plant’ (₹110.00 crore original cost).
The unutilized issue proceeds have been deployed in various instruments. A significant portion, ₹110.00 crore, is invested in an FD with Axis Bank maturing on July 4, 2027, yielding 7.30% return. Additionally, ₹18.64 crore is invested in MF – SBI Overnight Fund Direct Growth, earning a return of 18.96%.
Implementation Status of Objects
Regarding the implementation of the objects:
- The ‘Purchase of Plant & Machinery for Poly Lactic Acid (PLA) Project’ is On-going, with a completion target of December 31, 2026.
- The ‘Establishment of Gypsum Processing Plant’ is also On-going, with a target completion date of December 31, 2027.
- ‘General Corporate Purposes’ have been marked as Completed, with a target date of December 31, 2026.
Corporate Governance and Review
The Monitoring Agency Report was duly considered by the Audit Committee and the Board of Directors of Balrampur Chini Mills Limited on November 4, 2026. The company has also made the report available on its website, www.chini.com.
Source: BSE
